Author: PATRICK SEITZ / Source: Investor’s Business Daily
Wall Street analysts cut their price targets on shares of Activision Blizzard (ATVI) on Wednesday after the video game publisher delivered a sobering fourth-quarter report. But Activision stock surged as the company pledged to cut underperforming games and reinvest in its key franchises.
Activision stock jumped 7% to 44.57 on the stock market today.
Late Tuesday, the Santa Monica, Calif.-based company said it earned an adjusted $1.29 a share on net bookings of $2.84 billion in the December quarter. It matched analyst estimates for earnings, but missed Wall Street’s sales target for sales of $3.04 billion. On a year-over-year basis, earnings per share jumped 37% while sales climbed 8%.
Activision’s guidance was weak for the current quarter and full year.
Activision Earnings Guidance Misses Views
For the first quarter, Activision expects to earn an adjusted 20 cents a share on net bookings of $1.18 billion. Wall Street had forecast Activision earnings of 48 cents on sales of $1.49 billion.
For the full year, Activision guided to adjusted earnings of $2.10 a share on net bookings of $6.3 billion. Analysts…
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